Being a Landlord doesn’t have to be complicated

Whilst there are over 100 laws and legislations you need to be aware of (which can seem daunting!) complying with landlord legislation is easy - when you have the right advice.

It’s not difficult to comply with landlord legislation, but failing to do so can be extremely costly. The easiest way to deal with landlord legislation is to use the property management services of your local letting agent and let them take care of everything for you!

Renters Rights Bill

As we welcome in a new year, 2025 is also likely the year that is going to reshape the landscape of the Lettings Industry, what is now renamed the ‘Renters Rights Bill’ has been talked about widely within the property world since initially introduced in September 2024, having completed its third hearing and report stage the bill is due to have its second hearing in the house of lords on Tuesday 4th February, it is anticipated that the bill will be passed as soon as spring time, this bill will see several significant legislative changes affecting all landlords within the UK, here's a summary of the key updates:

  • Abolition of Section 21 Evictions: The bill proposes ending 'no-fault' evictions, requiring landlords to provide a valid reason for terminating a tenancy.
  • Introduction of Periodic Tenancies: All tenancies will transition to periodic status, eliminating fixed-term contracts.
  • Rent Increase Regulations: Landlords will be permitted to increase rent only once per year, with a minimum of two months' notice. Tenants can challenge increases they deem excessive.
  • Rents paid in Advance: New rules will be introduced to cap rents paid in advance to 1 month’s rent.
  • Ban on Discriminatory Practices: The bill prohibits landlords from refusing tenants based on their receipt of benefits or having children.
  • Right to Request Pets: Tenants will be able to request permission to keep pets, which landlords cannot unreasonably refuse. Landlords may ask a tenant to provide proof of pet insurance to cover potential damages.

More detail on the Renters Rights bill can be found on the following link: Guide to the Renters’ Rights Bill

Where does the bill sit now?

The Renters' Reform Bill is currently at its third reading, bringing it one step closer to delivering key changes for tenants and landlords.

Stamp Duty Changes

Significant adjustments to Stamp Duty Land Tax (SDLT) are scheduled:

  • Increased Surcharge: The surcharge for additional property purchases, including buy-to-let investments, will rise from 3% to 5%.
  • Lowered Threshold: Effective April 2025, the threshold at which SDLT becomes payable will decrease from £250,000 to £125,000, increasing tax liabilities for property acquisitions.

Making Tax Digital (MTD)

Tax reporting requirements are evolving:

  • Digital Record-Keeping: By April 2025, landlords earning over £50,000 annually must comply with MTD for Income Tax, necessitating digital record-keeping and online submissions.

Energy Efficiency Standards

The government plans to enhance energy efficiency requirements for rental properties:

  • Minimum EPC Rating: By 2030, rental properties must achieve a minimum Energy Performance Certificate (EPC) rating of C. Landlords should prepare for necessary upgrades to meet this standard.

Looking for more advice?

Landlords should stay informed about these developments and consider seeking professional advice to ensure compliance with the new regulations.

For more information or advise, feel free to contact Michael Gallagher (Lettings Director) or Joanne Kay (Head of Property Management).

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Prospect Estate Agency is committed to conduct our operations in a fully compliant manner. We fully support and adhere to all regulations covering the industry including The Estate Agency Act 1979, Competition Act 1998, The Consumers, Estate Agents and Redress Act 2007, Consumer Protection Regulations 2008, Sanctions and Anti-Money Laundering Act 2018, GDPR Act 2018, UK Competition Law, The Property Ombudsman Code of Practice and ARLA & Propertymark Protection.

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